Crude Oil Price Forecast – Crude Oil Markets Trying to Stabilize

WTI Crude Oil

The West Texas Intermediate Crude Oil market went back and forth during the trading session in early hours on Wednesday essentially doing nothing. This is a good sign because it means that we are simply going to fall straight to the floor. That being said, Saudi Arabia is starting to sell crude oil at lower prices due to a lack of demand and that will continue to weigh upon this market. Furthermore, if the US dollar shows significant strength again, that will also put downward pressure here. I think that any rally towards the $40 level will more than likely be sold into, as it is now previous support waiting to be future resistance.

Crude Oil Video 10.09.20

Brent

Brent markets have also stabilized a bit, as we are simply sitting sideways. That being said, it looks as if the $40 level is starting to bring some interest back into the market. I do not have any interest in trying to buy this market though, because I believe there is significant resistance above and for good reason. This bounce will be more or less from a technical nature and I think that if we get anywhere near the highs of the trading session on Tuesday, we will probably see sellers jump back into this marketplace. With that being the case, I am looking to fade short-term rallies as long as the market will continue to see such negativity out there and lack of demand. With that being the case, I will look towards short-term charts that have long wicks on the top of candlesticks to start selling.

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